NEW YORK, March 13 The euro slumped to session
lows against the dollar and yen Thursday afternoon after
comments from the European Central Bank chief signaled he
remained open to more action to avert the crippling effects of
More ECB stimulus aimed to help the euro zone economy is
seen eroding the purchase power of the common currency.
"Any material risk of inflation expectations becoming
unanchored will be countered with additional monetary policy
measures," ECB President Mario Draghi said in a speech at an
award ceremony in Vienna.
He added the euro's exchange rate is becoming more important
among policymakers to gauge the region's price stability.
The euro's earlier gains faded as traders dumped it, the
dollar and commodity-linked currencies in favor of the yen and
Swiss franc on escalating tension between the West and Russia
over the political future of Ukraine's Crimea peninsula.
The common currency fell 0.4 percent at $1.3850,
erasing earlier gains that propelled it to a 2-1/2-year peak of
Against the yen, the euro sank 1.3 percent to one-week lows,
last traded at 140.96 yen.